A quick snapshot of global & India market of Hearing Aids in India. For more information contact: goldenespatzen@web.de

1. Market Evaluation for
Hearing Aids in India

2. Global Market Overview
1997 Global Market Shares 1998 2006 2005 Global Market Shares
Others
Siemens Company # of Deals
Others Widex 7% Siemens
20%
24% Phonak ∼7 7% 21%
GNR ∼6
WD ∼4 GN
Philips Resound
Starkey Siemens ∼1
4% 17% Starkey
14%
10%
Resound
5%
Danovox WD
Widex # of deals ∼ 20
5% 12% Phonak WD
8% Phonak
8% 17% 21%
Hearing aids (HA) is ∼ US$ 4 Bn (2005) & categorized under medical devices business
HA is one of the few businesses with strong EU market domination & presence
The Hearing aids market has seen a major consolidation with a spurt of M&A
activities
Focus is on technological leadership & consolidation
Source: Equity Research

3. India: Economy & Healthcare
Economy Leverage Demographic Leverage
Stability of current Government Skilled human capital
+ 8% GDP growth target Democratic government
Continuity of economic & Widespread of English
structural reforms Macroeconomic stability
Currency will hold up reasonably
Mounting FDIs & Institutional
Investments
Corporate Advantage Healthcare Advantage
Dynamic private sector Healthcare industry will remain
Institutions supporting free market buoyant
economy Price sensitivities will remain
Largest local market in the world Generics/ Local mfg will increase
Well-developed financial sector More MNCs will come direct
Rich & diverse culture that generates
a wealth of ideas

4. Siemens Hearing Products
Based at Bangalore
Part of the huge Siemens Medical
Solutions
Large portfolio
Rs. 10,000 to Rs. 60,000 per device
Best selling products – Centra, Triano
Greater emphasis on Science &
Professional driven sales
Strong government liaison
Increasing consumerization – Not in
line with Siemens’ philosophy

5. GN Resound India
GN ReSound’s products have been
distributed on the Indian market since 1994
In 2005, GN decided to partner up with
the largest Indian GN ReSound distributor
to form GN ReSound India
GNR has limited product range
The focus is on consumer sales thru
professionals & retail chain
GNR does not wish to establish or run
retail chains
India organization expected to change in
view of the Phonak acquisition of GNR
globally

6. William Demant Holdings
WD present thru Distributors
Bernafon – Hearing Aid Centre,
Ludhiana
Oticon – Alps International, New
Delhi
Overlapping & negative sales synergies
Not fully integrated product portfolio
Selected launched portfolio
High focus on the high price variants
High style quotient products

7. Widex India
Based at Chandigarh
JV between Widex & an individual
Most developed channel & customer
contacts
Celebrity promotion – Syed Kirmani,
Ex-cricketer & Zohra Sehgal, Actress
Owns Senso Hearing Centre
Focus on direct consumers thru DTC
Promotion

8. Starkey Labs - India
India entry in 2007
Present as of now thru a distributor &
also a local player, Elcon
Plans for;
Sales office
Manufacturing site
Manpower allotment ∼ 40 people
Privately owned company
Hi-tech products & average sized
portfolio

9. HA Devices Value Chain
Cli
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Distributor
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Manufacturer
Dr
Co
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n
Stockist
Retail Driven

10. Customers at a glance
Lack of awareness… Abundance of denial
Major clusters of customers
Retailers/ Wholesellers
Professionals – Audiologists/ ENT Surgeons with
inclined Otology practice
Consumers/ Patients
Government organizations
Non-Government organizations
Promotions
Print/ TV/ Radio
Events – Consumer/ Healthcare
Professional recommendations
POS/ POP campaigns
Organizational campaigns
Companies with long-term view only will sail thru

11. ?&!
Thank you!